The government recently announced on a slow Friday a $1.29 trillion budget deficit as if it were no big deal for the completed fiscal year. In fact, this was spun as grand news since the previous budget deficit topped $1.4 trillion. We are now reaching a nationwide tipping point of debt. The U.S. Treasury and […]

The last 40 years have seen the U.S. housing market transform into a market largely driven by incredible amounts of debt. The credit card companies understood the basic notion that the monthly payment drove most financial decisions. Even though people purchase a home with a 30 year mortgage, the implicit understanding was that in a […]

What we are experiencing is a balance sheet recession. The reality of our current economic funk is highlighted by the growing unemployment rate and the diminishing purchasing power of many Americans. What is going to make this economic crisis drag out like a painful Hollywood divorce is the inability to reconcile the past with our […]

Many Americans have a hard time wrapping their mind around a declining currency or the hidden tax that is inflation. The U.S. Treasury and Federal Reserve understands this and for decades has exploited this issue to slowly siphon off the buying power of the U.S. dollar. Openly they tell the public that they are for […]

Investors had very little place to hide this year. Without a doubt, 2008 has been a tumultuous year for virtually every class of investment out there. The stock markets are seeing one of the worsts year on record since the Great Depression losing globally, an estimated $32 trillion in market capitalization.

So what do we get for our massive bailout of Citigroup? How about an ominous warning that global markets will collapse or we will face massive inflation. Either way, the suggestion from one analyst at Citi is gold will go to $2,000 in the next 2 years. We just backstopped $306 billion in toxic mortgages […]